In the Region

Report: Hershey may bid for Cadbury

Hershey Co., the Pennsylvania chocolatier, has been working with Italian chocolate maker Ferrero Spa to craft a possible joint bid for Cadbury P.L.C., the Wall Street Journal reported, citing people familiar with matter it did not name. It would be the first competing bid since Kraft Foods Inc. made its $16.7 billion offer for Cadbury, further raising the stakes for the UK confectioner. It remains unclear if an offer will be made. The discussions are in preliminary stages and haven't included discussions of financial specifics, the Journal reported. Hershey, Cadbury and Kraft officials declined to comment. - AP

US Airways, others add surcharges

US Airways Group Inc., the dominant airline at Philadelphia International Airport, said it will add a 5 percent surcharge to all U.S. flights on or after May 8. Spokeswoman Valerie Wunder says the surcharge will protect the airline in case fuel prices or other costs increase. Separately, Delta, Northwest, and United confirmed that they bumped the surcharge on some busy days next March and April to $30 each way from $20 - and to $50 on the day after the Super Bowl. - AP

RWE to sell rest of American Water

RWE AG, a German utility, said it is selling its remaining 26 percent stake in Voorhees utility American Water Works Co. Inc. RWE bought the South Jersey company in 2003 for $4.6 billion and sold part of its stake over the last two years for $2.4 billion in public offerings. Now, RWE plans to sell 37.4 millions shares of American Water common stock at an undetermined price. If the underwriters' option on the overallotment of 3.7 million shares is exercised, RWE's stake will be cut to zero. -Harold Brubaker

Judge issues order in Ponzi scheme

A federal judge in Denver issued a temporary restraining order against Philadelphia residents Troy B. Wragg and Amanda E. Knorr, who were accused by the Securities and Exchange Commission of operating a $30 million fraud involving "green" investments. The order halts operations of their company, Mantria Corp., of Bala Cynwyd, and freezes its assets. The two, with codefendants Wayde M. McKelvy and Donna M. McKelvy, were ordered to appear in federal court in Colorado on Friday for a hearing. The judge also froze the assets of the McKelvys' company, Speed of Wealth L.L.C., in Centennial, Colo. -Harold Brubaker

Amtrak ticket discounts to continue

Amtrak, the passenger railroad, extended a 25 percent discount through March 31 for trips along its Northeast Corridor regional service that connects Washington, Philadelphia, New York, and Boston. Some one-way fares would be as low as $49, Amtrak said. Amtrak ridership fell 2.5 percent in October. - Bloomberg News

Penn National bids on Nev. casino

Penn National Gaming Inc. offered to buy an unfinished Las Vegas casino resort out of bankruptcy for $50 million, the Wyomissing company said in a regulatory filing. The offer for Fontainebleau Las Vegas was made as a so-called stalking-horse bid in bankruptcy court, which means that it will provide the baseline at a bankruptcy auction. Penn National, which has operations in 15 states but not in Nevada, also said it offered a $51.5 million loan to be used to stabilize the unfinished construction and for other expenses. - Harold Brubaker

Elsewhere

New fraud task force formed

The Obama administration formed a new task force to target financial fraud - replacing an earlier corporate fraud task force. Attorney General Eric Holder said the new group will have a broader scope - and incorporate state investigators as well as federal agencies - to investigate and prosecute financial crimes that worsened the market collapse. The task force replaces one created in 2002 following corporate scandals surrounding WorldCom Inc., Enron Corp., Adelphia Communications Corp., and others. - AP

Inflation remains moderate

Wholesale prices rose less than expected in October as the weak economy kept inflation pressures largely in check. The Labor Department said its Producer Price Index rose 0.3 percent last month. Analysts had expected a 0.5 percent gain, according to Thomson Reuters. The index tracks the prices of goods before they reach store shelves and is considered an early read of price trends. -AP

Fed cuts emergency loan length

The Federal Reserve said it will cut by about two-thirds the duration of loans offered to commercial banks from the government's emergency lending program. The reduction - to 28 days from 90 days - will start in January and is prompted by the easing of the nation's financial crisis, the Fed said. The program is aimed at getting banks to lend more freely to businesses and individuals. -AP

Production up, but not at factories

Industrial production rose 0.1 percent last month, less than economists had expected. Moreover, production at factories, which is the biggest part of overall industrial production, fell 0.1 percent, signaling that consumers and businesses remain cautious in their spending and suggesting a sluggish economic recovery. The only bright spot in the Federal Reserve's report was activity at electric and gas utilities, which rose 1.6 percent. - AP

Mortgage delinquencies hit record

The pace at which people fell behind on their mortgages slowed during the summer for the third consecutive quarter, but the overall delinquency rate hit another record, a new report showed. For the three months ended Sept. 30, 6.25 percent of U.S. mortgage loans were 60 or more days past due, according to credit reporting agency TransUnion. That's up 58 percent from 3.96 percent a year ago. The rate was up 7.6 percent from the second quarter. - AP

Profits up for retailers

From Target Corp.'s cheap chic shoppers to Saks Inc.'s luxury loving customers, there were signs consumers were willing to splurge on a few extras in the third quarter. But just barely. Shoppers at both stores and discount retailer TJX Cos. surprised analysts in seeming more willing to indulge. Target profit climbed 18 percent. Saks managed a surprise profit for the first time in 18 months. TJX, parent of TJMaxx stores, fared best, with quarterly profit up 32 percent. - AP